Complying With the Requirements of the Lead-Based Paint Addendum

If your client is selling or purchasing a home constructed before January 1, 1978, the contract must include the Addendum for Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law (the Addendum). There are some exceptions, but a good practice is to always get the Addendum completed and signed if the property was constructed before January 1, 1978.  The Addendum is not required for:

1. Homes built during or after 1978
2. Dwellings that don’t have separate bedrooms (i.e., lofts and efficiency apartments)
3. Rental units with a lease term of 100 days or less (think: vacation homes)
4. Housing for the elderly, unless children will be living there
5. Housing for the disabled, unless children will be living there

How to fill out the form:

Paragraph B. Seller’s Disclosure

1. Seller has actual knowledge or reports of lead-based paint on the property.  If a seller is aware of the presence of lead-based paint, they would check box B.1.(a) and describe what they know in the blank and/or check box B.2.(a) and list all reports or records they have, plus provide a copy of those reports.
2. Seller doesn’t know whether there is lead-based paint on the property or not.  If a seller does not know if there is lead-based paint and they don’t have any reports or records pertaining to lead-based paint, then they will check boxes B.1.(b) and B.2.(b)

Paragraph C. Buyer’s Rights

1. Buyer may waive the opportunity to conduct a risk assessment by checking box C.1.  They may choose to waive the opportunity as an inducement to make their offer more attractive to a seller, or for any other reason by checking Box C.1.
2. Buyer may retain the right to have a lead-based paint inspection within 10 days after the effective date of the contract by checking Box C.2.  If lead-based paint is detected, the buyer can terminate the contract and get their earnest money back by giving notice to the seller within 14 days after the effective date.  The buyer is not required to have the property inspected for lead-based paint just because this is the box checked.  But checking this box retains their right to do such an inspection.  The parties to the contract may mutually agree, in writing, to lengthen or shorten the time period for the inspection.

Paragraph D. Buyers’ Acknowledgement

Always check box D.2, and always provide the buyer with the pamphlet “Protect Your Family from Lead in Your Home” if the property was built prior to January 1, 1978.  If there are reports or records and box B.2.(a) was checked, then you will check box D.1. and provide the buyers with those reports. 

Audit-Proof Your File

The Addendum needs to be completed and signed by the seller and the listing agent BEFORE the buyer signs it.  If you are the listing agent, it is a good practice to get the Addendum completed and signed when you get the seller’s disclosure notice completed and signed and to make it available online for potential buyers’ agents.  If you are a buyer’s agent, it is a good practice to get the completed and signed form from the listing agent prior to submitting an offer.  The Addendum must be signed and dated by all parties (buyers, sellers, listing agent and selling agent) on or before the date of the contract.  A lead-based paint addendum dated after the date of the contract is not in compliance with HUD’s requirements.  The completed and signed Addendum must be retained for at least 3 years by the brokers representing each party.